SkyCity Entertainment Group reported weaker FY26 results as casino revenue fell and costs rose. The New Zealand casino operator was hit on both sides of its accounts. Underlying EBITDA dropped 22.3% year-over-year, landing at NZ$181.6 million, or $107.7 million, for the year ended June 30. Underlying revenue also declined 0.3% to NZ$822.7 million, or $487.9 million.

Most of this decline came from weaker gaming activity. SkyCity said gaming revenue fell due to the carded-play rollout, weaker premium play and lower visitation and spending in the fourth quarter. The carded-play change alone cut EBITDA by NZ$20 million to NZ$30 million. At the same time, costs kept rising. Operating expenses increased 8.4%. Non-gaming operations, including the New Zealand International Convention Centre, hotels and food and beverage, could not fully offset the casino weakness.

Gaming Revenue Falls as Costs Rise

Gaming remained the main source of pressure in FY26, with group gaming revenue down 5.9% on weaker customer activity and a soft final quarter. SkyCity attributed the drop to carded play, weaker premium play and fewer visitors. Operating costs rose 8.4% for the year.

The company said higher NZICC costs, online gaming investment, labour costs, and technology and compliance spending drove the rise in expenses. Profit fell sharply. Net profit after tax declined 37.6% to NZ$18.2 million, or $10.8 million. Underlying net profit fell even harder, declining 46.9% to NZ$38 million, or $22.5 million.

But non-gaming businesses managed to grow even as gaming revenue struggled. Non-gaming revenue rose 13.4% in FY26, boosted by the NZICC opening in February and growth in hotels and food and beverage. That’s a sign these areas matter more as the casino side faces challenges.

Auckland Results Show Mixed Performance

Results out of SkyCity Auckland were mixed for FY26. Gaming revenue at the site dropped 11.3% to NZ$317.2 million, or $188.1 million. The slide in casino revenue got partially offset by stronger non-gaming performance.

Non-gaming revenue at Auckland increased 16% to NZ$181.4 million, or $107.6 million. Hotels, food and beverage, and convention-related business drove that boost. Still, these gains couldn’t stop an overall earnings decline for the property. Underlying EBITDA at SkyCity Auckland fell 14.2% to NZ$179.8 million, or $106.6 million. The lower gaming figures outweighed the improvement from non-gaming activities.

The NZICC was a bright spot. From its February 11 opening to year-end, the centre hosted 141 events and recorded roughly 100,000 visits. SkyCity says the convention centre already has a pipeline of events that should bring in about 350,000 visits in FY27. As SkyCity turns to the new year, there are high hopes for continued activity at the convention centre. But casino operations are expected to stay under pressure.

Adelaide Faces Strategic Review

The Adelaide property also saw earnings drop. Underlying EBITDA fell 31.5% to A$19.5 million, or $13.9 million, even though revenue was steady. SkyCity booked an A$43 million, or $30.6 million, write-down on the Adelaide property. The company plans to run a strategic review of the Adelaide business in the first half of FY27. SkyCity gave no details on the review’s likely outcome. The move follows an A$21 million fine to settle major regulatory issues in Adelaide.

SkyCity Targets Cost Savings in FY27

Citing economic uncertainty, SkyCity gave no FY27 financial guidance. It is targeting NZ$30 million, about $17.8 million, in cost savings in FY27, rising to about NZ$70 million in FY28. The operator is also preparing to enter New Zealand’s regulated online casino market. SkyCity declared no final dividend for the year.